Investing.com – Manufacturing activity in the U.S. fell significantly more-than-expected in May, dropping to a one-year low, industry data showed on Wednesday.
In a report, the Institute for Supply Management said its index of purchasing managers fell to 53.5 in May, compared to April’s reading of 60.4.
Analysts had expected the ISM index of purchasing managers to decline to 57.5 in May.
On the index, a reading above 50.0 indicates industry expansion, below indicates contraction.
The report showed that the ISM index of manufacturing prices declined more-than-expected in May, dropping to 76.5 from 85.5 in April, worse than the expected decline to 82.0.
Bradley J. Holcomb, chair of the ISM Manufacturing Business Survey Committee said, “Slower growth in new orders and production are the primary contributors to this month's lower PMI reading.”
Following the release of the data, the U.S. dollar was down against the euro, with EUR/USD gaining 0.07% to hit 1.4408.
Meanwhile, U.S. equity markets were broadly lower after the open. The Dow Jones Industrial Average slumped 0.72%, the S&P 500 index fell 0.7%, while the Nasdaq Composite index dipped 0.25%.
In a report, the Institute for Supply Management said its index of purchasing managers fell to 53.5 in May, compared to April’s reading of 60.4.
Analysts had expected the ISM index of purchasing managers to decline to 57.5 in May.
On the index, a reading above 50.0 indicates industry expansion, below indicates contraction.
The report showed that the ISM index of manufacturing prices declined more-than-expected in May, dropping to 76.5 from 85.5 in April, worse than the expected decline to 82.0.
Bradley J. Holcomb, chair of the ISM Manufacturing Business Survey Committee said, “Slower growth in new orders and production are the primary contributors to this month's lower PMI reading.”
Following the release of the data, the U.S. dollar was down against the euro, with EUR/USD gaining 0.07% to hit 1.4408.
Meanwhile, U.S. equity markets were broadly lower after the open. The Dow Jones Industrial Average slumped 0.72%, the S&P 500 index fell 0.7%, while the Nasdaq Composite index dipped 0.25%.